Vermont litigation funding company bonds.
From $500.

Looking for the Vermont money transmitter bond?

A company providing consumer litigation funding in Vermont must register with the Department of Financial Regulation and file a surety bond or letter of credit under 8 V.S.A. § 2252, equal to the greater of $50,000 or double its largest Vermont funded amount over the prior three years. Premiums cost 1% of the bond amount.

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Required under 8 V.S.A. § 2252 before a company registers with Vermont's DFR to fund consumer legal claims

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Amount is the greater of $50,000 or double your largest VT funded amount over the prior three years — the statutory floor, whichever is higher

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From $500, filed through NMLS — enter the amount your registration requires and see your price at application

From $5001% of the bond amountSoft pull onlynever a hard inquiryFastinstant underwriting for most

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Price

How much does a Vermont litigation funding company bond cost?

1% of the bond amount, from $500 at the $50,000 minimum. Enter your amount in the calculator for the exact price.

How it works

Three steps. One sitting.

No long underwriting queue for the standard financial-stability bond — enter your amount, consent to a soft pull, and file with the Department of Financial Regulation through NMLS. Here is the whole thing:

TODAY · ONLINE

Apply online

Your company details, the bond amount your registration requires, the effective date, and a one-time consent to a soft credit pull.

INSTANTLY

Approved

The application includes a credit consent, but it authorizes a soft pull only — never a hard inquiry, and it will not affect your score. Pricing is 1% of the bond amount.

SAME DAY

File through NMLS

Your executed bond and power of attorney arrive by email, ready to upload to your NMLS record for the Department of Financial Regulation. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the litigation funding bond actually guarantees

Vermont regulates consumer litigation funding — a nonrecourse transaction in which a company purchases a consumer's contingent right to a share of the potential net proceeds of a settlement or judgment. Under 8 V.S.A. chapter 74, any company that funds a claim pending in Vermont, or funds a Vermont resident's claim pending anywhere, must register with the Department of Financial Regulation before doing business, regardless of volume.

The bond is the registrant's evidence of financial stability. 8 V.S.A. § 2252(b) requires a surety bond or irrevocable letter of credit, issued and confirmed by a Vermont-authorized financial institution, equal to double the company's largest funded amount in Vermont over the prior three calendar years, or $50,000, whichever is greater. It backs the company's ability to meet its obligations to Vermont consumers, not the outcome of any underlying lawsuit.

Registration and the bond are filed through the Nationwide Multistate Licensing System (NMLS), the same portal used for mortgage and consumer-lending licensees. Enter the amount your registration requires — most companies start at the $50,000 floor — and your premium is priced from $500 after a soft credit consent that never triggers a hard inquiry.

8 V.S.A. § 2252Under 8 V.S.A. § 2252, a company may not engage in the business of consumer litigation funding in Vermont without first filing a registration with the Commissioner of the Department of Financial Regulation, along with a registration fee and evidence of financial stability. That evidence must include proof of a surety bond or irrevocable letter of credit, issued and confirmed by a financial institution authorized to transact business in Vermont, equal to double the company's largest funded amount in Vermont in the prior three calendar years or $50,000, whichever is greater. Registration is submitted and renewed through NMLS; confirm your required bond amount on your NMLS filing.

You need this bond if you are

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A litigation funding company registering with Vermont's DFR to fund claims pending in the state

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Funding a Vermont resident's claim filed in another state — Vermont registration still applies

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Renewing your registration and your prior-year Vermont funded amounts have raised the required bond

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Expanding a multistate litigation-funding business into Vermont through NMLS for the first time

After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The premium covers a one-year term from the effective date you choose.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

File through NMLS. Your executed bond and power of attorney arrive by email, ready to upload to your NMLS record for the Department of Financial Regulation. Wet-ink originals mailed on request.

What sets the price

The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.

One soft credit pull, never a hard inquiry, and it never affects your score.

Where a check runs, it decides approval; the rate is the same for everyone approved.

One application, then a quick review.

These are the actual underwriting fields, including your funded-amount history and a one-time consent to a soft credit pull. The pull never affects your score, and your price — from $500 — is set at application.

Start the application →

FAQ

Common questions.

How much is the Vermont litigation funding company bond?Premiums cost 1% of the bond amount your registration requires. The amount itself is the greater of $50,000 or double your largest funded amount in Vermont over the prior three calendar years, per 8 V.S.A. § 2252(b). Enter that figure and your exact price appears at the application.

What amount should I enter?Most companies start at the $50,000 statutory floor. If your largest single funded amount to a Vermont consumer over the prior three calendar years, doubled, exceeds $50,000, enter that higher figure instead — your NMLS filing will state the exact number the Commissioner expects.

What does the bond guarantee?It is evidence of financial stability backing your obligations to Vermont consumers under 8 V.S.A. § 2252 — not a guarantee of any lawsuit outcome. If a registered company fails to meet its financial obligations, the Department of Financial Regulation and affected consumers can look to the bond.

Is there a credit check?Yes: one soft credit pull, never a hard inquiry, and it never affects your score. No hard inquiry ever runs on this bond, and pricing is 1% of the bond amount.

Where do I file it?Through the Nationwide Multistate Licensing System (NMLS), alongside your Vermont consumer litigation funding company registration with the Department of Financial Regulation. Your executed bond arrives by email, ready to attach to your NMLS record.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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Price and requirements checked on the carrier’s application, 8 October 2026. Page updated 9 October 2026.

NMLS registration waiting on one filing.

Premiums from $500, soft pull only. Enter the amount your registration requires and file through NMLS the same day.

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Vermont litigation funding company bonds.From $500.